Q: ate of to be obtalned for the investment to be made in the Is cording to the cash flow diagram…
A: Rate of return is a method which helps in knowing the net gain or loss of an asset or an equipment…
Q: The function f(x)=800 represents the rate of flow of money in dollars per year. Assume a 15-year…
A: Present value is the discounted value of future cash flows that is expected to be received at…
Q: 7-12 Compute the rate of return on the following invest- A ment. Year Cash Flow -$10,000 1 3,000 3…
A: Information Year Cash flow 0 -10000 1 0 2 3000 3 3000 4 3000 5 3000
Q: Solve it correctly. I will rate accordingly with 3votes. Solve by hand and excel.
A: Rate of Return: The rate of return represents the net loss or gain made over a period of an…
Q: 1. An investment of PhR. 6500.00 earns the following interest per year in-0: 2=0:025, is=0:01,…
A: The interest rate gives the value with which money grow with time and interest is being accumulated…
Q: 4. An investment has the following cash flows. What is the ARR? Year 0 -90,000 Year 1 45,000 Year 2…
A: Year Cash Flows 0 -90,000 1 45,000 2 10,000 3 30,000 4 30,000
Q: 5.Given the following cash flow for a certain investment and a MARR of 12% per year: End-of-year…
A: The internal rate of return is the capital budgeting technique used to calculate the rate at which…
Q: 1. Compute the IRR for the investment represented by the following cash flow table: Year 0. 1 3 4 6.…
A: An internal rate of return or IRR is referred to as the metric, which are used in the financial…
Q: Problem 07.037 - MIRR calculation For the net cash flow series, find the external rate of return…
A: given information the investment rate = 16% borrowing rate = 11%
Q: e value at the end of the 8th year for the cash flow diagram shown below if i=4% ded annually. What…
A: Future Value is the value of cash flow at a future point in time. For calculating the future value…
Q: Consider the following cash flow: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8…
A: IRR stands for internal rate of return. When used, it estimates the profitability of potential…
Q: Calculating IRR Compute the internal rate of return for the cash flows of the following two projects…
A: Internal Rate of Return is the discounting rate where the net present value of the project is zero.
Q: Set up the engineering economics relations to compute the equivalent annual series (A=??) in years 1…
A: We will calculate NPV. NPV or net present value can be calculated by discounting the future cash…
Q: Investment Perlod 1 2 3. 4 $(1,000) $100 $100 $100 $100 $1,100 B (1,000) 264 264 264 264 264 (1,000)…
A: Net present value: NPV = Present value of cash inflows - present value of cash outflows. Formula:…
Q: Calculate the internal rates of return of the following investment: Net investment -$1,000 Year 0…
A: Initial investment (I) = $1000 Cash flow in year 1 (CF1) = $6000 Cash flow in year 2 (CF2) = -…
Q: If a capital investment is $28,048 and equal annual cash inflows are 62,605.3, state the internal…
A: Solution: Internal rate of return factor is arrived at by dividing capital investment by annual cash…
Q: b) Aida Kamilia won RM1,000,000 in a contest, to be paid in twenty RM50,000 payments at yearly…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
Q: Use an external investing rate of 12% and an external borrowing rate of 6%. Compute the rate of…
A: The given problem can be solved using MIRR function in excel. MIRR function computes rate of return…
Q: Calculate the rate of return to be obtained for the investment to be made in the 1st year ccording…
A: Year Cash Flow 0 $ - 1 $ -80,000.00 2 $ 9,000.00 3 $…
Q: ving three relations, the correct one to calculate the annual v Cash Flow cost, S ual cost, S per…
A: Annual worth can be calculated by present value method and future value method.
Q: what is the simple payback period of following investment End of year Cash flow $ -26000 1 -3000 2-5…
A: The capital budgeting is a technique that helps to analyze the profitability of the project and…
Q: Consider an investment with the following cash flows: Year Cashflows PV of P 1 @ 14% 0 (P 31,000)…
A: Profitability index is calculated as: = Present value of future cash inflows / Initial investment
Q: 1- Calculate the rate of return to be obtained for the investment to be made in the 1st year…
A: In manual calculation, we have to use hit and trial method. In this method, we start by arbitrarily…
Q: 3. Compute for the following: Required: Payback period, payback reciprocal, accounting rate of…
A: The question is related to Capital Budgeting. 1. Payback Period is the length of time required to…
Q: Consider the following cash flow of a company: Year Cash flow -600 10 -5000 11-40 1000 a) Compute…
A: Cash flows show the value of cash which a company can either receive or pay to other company. When…
Q: 2. Assume a fund accumulates at a force of interest given by 6 .02t. Find the effective rate of…
A: Force of interest (δ) = 0.02t Let the effective interest rate in second year = r For that, we need…
Q: - Suppose that the cash flows of two investments are as follows: Unit: S CASH FLOW AT YEAR YEAR: 2…
A: Solution : Computation of NPV Investment A Investment B Particulars Period PV Factor…
Q: An investment has the following cash flow series where interest is 7.0%: End of Year Cash Flow End…
A: The conceptual formula is:
Q: 7-10 Calculate the rate of return of the following cash flow with accuracy to the nearest 1/10…
A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…
Q: Calculate the internal rate of return (IRR) of the following cash flows: Year 0 1 2 3 4 5…
A: Solution: Computation of IRR Year Cash Flows IRR 0 -$1,650,000.00 12.38% 1 $330,000.00 2…
Q: What is the minimum value of x such that the investment is attractive based on annual worth if…
A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…
Q: Assume a $6,500 investment and the following cash flows for two alternatives. Year Investment…
A: The payback period is the number of months or years it takes to return the initial investment. To…
Q: If the reinvestment rate c = 15%, find the composite rate of return. Year 1 2 3 Net Cash Flow…
A: Rate of Return: The investment's net profit or loss over a certain time period is represented by…
Q: 2. Compute the IRR for the investment represented by the following cash flow table: Year 0. 1 3 4 6.…
A: A discount rate at which the net present worth of an investment is equal to zero is term as an…
Q: Problem No. 3 The cash flows for an investment are shown below: Year 1 3 4 Cash flow $1400 1500 1600…
A: The equivalent annual benefit (EUAB) is the annual benefit amount of a project.
Q: What is the profitability index of an investment with cash flows in years 0 thru 4 of -340, 120,…
A: Profitability Index - It is obtained by dividing the present value of future cash inflows by the…
Q: What is the Net Present Value of the following cash flow stream? Year Cash Flow 0 -$1,977 1…
A: The below expression can be used to calculate the net present value:
Q: An investor invested $50,000 at the beginning. He received the following cash flows from the…
A: IRR is the annual growth rate a project will generate until the life of the project. It is…
Q: 5-8 present and future values of a cash flow stream.An investment will pay $100 at the end of each…
A: Present value The current amount of money that will be collected in the future in the form of one…
Q: An investment has the following cash flow series where interest is 8%: a. Determine the present…
A: There are two ways to consider a money’s time value i.e. compounding and discounting. Compounding…
Q: 3. Use an external investing rate of 12% and an external borrowing rate of 6%. Compute the rate of…
A: The rate of return: The discount rate that equates the initial investment to the present value of…
Q: what is the simple payback period of following investment End of year Cash flow $ -26000 -3000 2-5…
A: Simple payback period is that period which shows the time in which initial investment can be…
Q: Consider an investment with the following cash flows: Year Cashflows PV of P 1 @ 14% 0 (P 31,000)…
A: Solution : Profitability index means Profit to Investment ratio in present worth of return on the…
Q: Projects A and B have the following net cash flows: End of year 0 -$250 -$250 1 2 $240 $260 $300…
A: Req-a-i Project A Year Cash Flow Cumulative Cash Flow Year 0 -$250 -$250 Year 1 $240…
7-12
A Compute the
Year Cash Flow
0 − $8000
1 0
2 2600
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Compute the rate of return on the following investment. Year Cash Flow 0 1 2 3 4 5 - $8000 0 2600 2600 2600 2600Q2. Compute the rate of return on the investment characterized by the following cash flow. Year 0 1 3 4 S Cash Flow -$50.0 +20.0 -40 +36.8 +36.8 +368Calculate the EAR of the following investment, entered as a percentage (Example: if your answer is 0.145, enter 14.5) Year Number Cashflow 0 -11400 1 3500 2 3000 3 3100 4 2800 Your Answer:
- 7. Fuente, Inc., has identified an investment in which the following cash flows are deposited in the years listed. If the expected return is 8 percent, what is the future value of these cash flows at Year 4? What is the future value at a expected return of 11 percent? At 24 percent? Year Cash Flow $1,075 1,210 3 1,340 4 1,420=NPV(B26,I27:R27)-B24 B26 = discount rate of 9% B24 = initial investment of $30m I27:R27 = yearly cash flows: what are the cash flows for each year?2. Consider the following cash flow for an investment. Year Cash Flow -80 1 -30 -20 3 +150 Determine by graphical method the rate of return on this cash flow. Try i = 2% and i= 10%
- Calculate the APR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Year Number Cashflow 0 -11000 1 3000 2 3500 3 2900 4 2800What is the profitability index of an investment with cash flows in years 0 thru 4 of -340, 120, 130, 153, and 166, respectively, and a discount rate of 13%? A. 0.15 B. 0.22 C. 0.35 D. 0.42 E. 0.556. Wainright Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 720 2 930 3 1,190 4 1,275 If the discount rate is 10 percent, what is the present value of these cash flows? Present value $ What is the present value at 18 percent? Present value $ What is the present value at 24 percent? Present value $
- You have been depositing money into an account yearly based on the following investment amounts, rates and times. What is the value of that Investment account at the end of that period?For the investment shown in the following table, calculate the total return earned over the unspecified time period. Cash flow during period Beginning-of- period value End-of- period value −$10 $3,200 $2,800 The total return on the investment is __%.What is the profitability index for an investment with the following cash flows given a 20 percent required return? Year Cash Flow 0 -$21,000.00 1 $7,200.00 2 $9,300.00 3 $8,500.00